The statutes provide for a partial abatement of the ad valorem taxes levied on a qualified property. The effect of this partial abatement results in a Tax Cap. The tax cap will limit the increase of your tax bill to 3% over the previous year`s tax amount for your primary residence within Nevada or rental properties where the rent charged does not exceed the fair market rent for the county in which the dwelling is located, as most recently published by HUD. Most other property will receive a higher "cap", which, for 2011/2012 is 4 % over the previous years tax bill. This higher cap is subject to change yearly. It does not limit the increase in assessed value.